Copper prices extended gains into Monday, rising by 0.15 per cent at the domestic markets after the leading US lawmakers exuded confidence that they could reach a deal to avoid the "fiscal cliff" in turn bolstering the demand outlook for the industrial metal in the world's largest economy. At the MCX, copper futures for November 2012 contract were trading at Rs. 422.45 per 1 kg, up by 0.15 per cent, after opening at Rs. 422 against the previous closing price of Rs. 421.80. It touched the intra-day high of Rs. 423.05 till the trading. (At 11.19 AM today).
Sentiment improved further as the prospects for demand for the industrial metal increased with improving economic growth in China, world's largest consumer of the metal and also on speculation that Japan will expand stimulus measures.
Prices also rose after the European leaders agreed to tighter euro zone budget rules with an aim to fight a 2-year debt crisis and on reports that the European Central Bank (ECB) had stepped in to buy Italy's bonds which improved the demand prospects for the industrial metal.
Moreover, a weaker dollar makes copper cheaper for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.22 per cent lower at 81.078 on the Inter-Continental Exchange (ICE) at 11.19 AM IST.
At COMEX, copper futures for December 2012 contract traded at US$3.4705 per pound, up by 0.55 per cent. It opened at US$3.4520 against the previous closing price of US$3.4515. It touched the intra-day high of US$3.4840 till the electronic trading. (At 11.20 am IST).